SF Holding (06936) disclosed that its board has authorised the company and its subsidiaries to invest no more than RMB 38.00 billion of idle internal funds in low-risk wealth-management products during 2026. The decision was approved at the fourth meeting of the company’s seventh board on 30 March 2026 and will remain effective for 12 months from that date.

The permissible instruments include bank and other financial-institution offerings such as structured deposits and low-risk fixed-income products. Within the approved cap, funds may be recycled, although the outstanding balance—together with any reinvested returns—must not exceed the RMB 38.00 billion limit at any point.

Management stated the initiative aims to enhance returns on surplus cash without impairing day-to-day liquidity or operational funding. The programme will be financed entirely with self-owned capital; no proceeds from fundraising activities or bank loans will be used.

Risk controls comprise: 1. Centralised execution by the finance department, which will select counterparties with sound credit profiles and proven profitability. 2. Ongoing supervision by the internal audit department, including periodic reviews of investment performance, risk management and fund utilisation. 3. Oversight by the board’s audit committee, empowered to conduct regular or ad-hoc inspections.

The transaction does not constitute a connected transaction under applicable regulations and did not require shareholder approval. Accounting treatment will follow PRC Accounting Standards for Business Enterprises Nos. 22, 37 and 39 concerning financial instruments and fair-value measurement.

The board believes the deployment will not affect core operations and is expected to improve overall capital efficiency and shareholder returns within a controlled risk framework.